Ill. AG Issues Report on Treasurer-College Savings Program-Financial Audit

SPRINGFIELD, Ill., Jan. 24 -- Illinois Auditor General Frank J. Mautino issued the following audit report digest about Office of State Treasurer-College Savings Program-Financial Audit:

INTRODUCTION

The College Savings Program (Program) was established in March 2000 pursuant to P.A. 91-0607 which authorizes the State Treasurer to establish and administer a "qualified state tuition program" under Section 529 of the Internal Revenue Code of 1986, as amended. Participants of the Program have a choice of two Section 529 investment programs, the Bright Start College Savings Program and the Bright Directions College Savings Program. The State Treasurer selected an investment firm (Manager), one for Bright Start and one for Bright Directions, to advise the Office on the investment of the Trust assets, to administer the Trust assets, and to provide other services relating to the Program. The Treasurer acts as trustee and is responsible for the overall administration of the programs.

To administer the Program, the Treasurer has established a division entitled "The College Savings Program Division." The revenues and expenditures of the Division are recorded in a fund maintained by the Treasurer entitled College Savings Program Administrative Trust Fund, which is classified as an enterprise fund. A private-purpose trust fund was used to account for assets held by the Program in a trustee capacity or as an agent for individuals throughout the United States. At June 30, 2016, assets in this fund totaled $8,127,549,486.

AUDITORS' OPINION

Our auditors stated that the June 30, 2016 financial statements of the Office of the Treasurer - College Savings Program are presented fairly in all material respects.

FRANK J. MAUTINO

Auditor General

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SPECIAL ASSISTANT AUDITORS

Our Special Assistant Auditors for this audit were RSM US LLP.

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